이 기사는 2021년 10월 28일 08:06 thebell 에 표출된 기사입니다.

At least five potential buyers are pursuing 4% of Woori Financial Group in a sale process for about a 10% stake in the financial services holding company held by Korea Deposit Insurance Corporation (KDIC), as the state agency sweetens the deal by offering the right to nominate an outside director.

A total of 18 potential buyers who expressed interest in purchasing KDIC’s stake in Woori Financial have started due diligence, industry sources said on Tuesday.

Among them are Taiwan’s Fubon Financial and Korea Investment & Securities – which are existing shareholders in the company – as well as mobile carrier KT, Hoban Construction, Harim Group’s shipping unit Pan Ocean, Glenwood Private Equity, Eugene Private Equity and fintech firm Dunamu.

KDIC, which put approximately a 10% stake up for sale, will grant the right to nominate an outside director to those buying a 4% or more stake in Woori Financial. This has helped to boost investor interest, with at least five potential buyers said to be seeking to acquire 4% of the company.

“Fubon Financial, Hoban Construction, Harim Group, Glenwood PE and Eugene PE are willing to buy a 4% stake as far as I know,” said an industry insider. “The sale process has attracted stronger interest than expected.”

Factors other than bid prices are expected to have a great impact on the seller’s decision, industry watchers said. KDIC made it clear that it would consider non-financial factors decided by the country’s Public Fund Oversight Committee when choosing buyers.

Fubon Financial is said to have strong interest in acquiring an additional stake in Woori Financial. The Taiwanese group bought Woori Bank’s 4% in Woori Financial in 2019 through its insurance arm Fubon Life Insurance.

A director representing the insurance company stepped down from Woori Financial’s board last month for personal reasons. If Fubon Life Insurance acquires an additional 4% stake, this would allow the Taiwanese insurer to nominate two outside directors to the board at the company’s annual general meeting next year.

However, Woori Financial and the South Korean financial regulator may not prefer to give two seats of the company’s board to a foreign buyer, industry watchers said. This also could virtually make Fubon Life Insurance the largest shareholder in Woori Financial, except for other major shareholders National Pension Service and the company’s employee stock ownership plan.

Additionally, the country’s financial regulator could view Fubon Life Insurance as industrial capital as its parent company, Fubon Financial Holdings, has majority stakes in companies in the telecommunication and ecommerce sectors. This would require the Taiwanese company to grant regulatory approval to acquire an additional stake in a financial services company under South Korean law, making it less attractive as a buyer.

Korea Investment & Securities, another existing shareholder in the bidding race, is less likely to double its stake in Woori Financial, industry watchers said.

“Woori Financial may hope Korea Investment & Securities to buy a 4% stake, but it appears the brokerage firm is not so willing to do that,” said a source.

Meanwhile, KT is interested in taking a 4% stake but reportedly offered to pay the acquisition cost with its treasury shares. This seems to be part of efforts by Ku Hyeon-mo, KT’s chief executive, to boost the mobile carrier’s share price before his term ends next year.

However, such a condition could make KT as a less preferable buyer, especially considering that KDIC already secured sufficient interest from investors.

KDIC will receive binding offers by November 18, with the deal expected to be signed in December. (Reporting by Jang-jun Lee)